Peak of pipe PE imports in Russia to fall to October

August 19/2011

(MRC) -- Major Russian producers of pipes are actively contracting
polyethylene in foreign markets for September Ц October production. The peak of
PE pipe imports is expected in October, but it will be lower than a year ago,
according to MRC DataScope.

Last year the peak of imports fell to October and made around 14 KT. Such
significant import volumes were boosted by high demand and planned shutdown of
Kazanorgsyntez HDPE production in September.

This year is not going to be an exception. The peak of PE pipe imports is
also expected to be in October, but the figures will be lower compared to last
year period.

Prices for September Ц October deliveries of European coloured PE100 are
settled in the range of EUR 1.100-1.200/mt, FCA. In Asia the material for August
deliveries is offered, on average, for USD 1.600 - 1.660/mt,
FOB.

Despite ongoing shutdown for maintenance of Kazanorgsyntez, the only
Russian producer of coloured PE 100, there is sufficient PE offer in the
market.

Price offer for the Russian coloured PE 100 in the spot market is, on
average, in the range of RUB 61.000-62.000/t, including VAT, FCA Kazan.